Honda 2008 Annual Report Download - page 28

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In calendar 2007, major markets in the Other Regions geographical segment expanded against
a background of increasing crude oil and other raw material prices. Compared with the previous
year, the Brazilian automobile market* grew to approximately 2,460,000 units, while the Austra-
lian market** expanded to approximately 1,050,000 units. Markets in the Middle East and South
American markets other than Brazil also experienced overall expansion.
Amid these operating conditions, Honda’s unit sales in the Other Regions during fiscal 2008
expanded 26.6%, to 314,000 units. In Brazil, sales of Civic and Fit flexible fuel vehicle (FFV) models
which are able to operate on 100% ethanol or a mixture of gasoline and ethanol were quite robust,
while in other countries, sales of the CR-V and Civic were strong.
In the production area, to meet expanding demand in Brazil, in July 2007 Honda increased
the annual production capacity of its Brazilian plant from 80,000 units to 100,000 units. Also, in
Argentina, Honda began construction work in November 2007 on a new plant that is scheduled
to go into operation in the latter half of calendar 2009 and will have an annual capacity of 30,000
units. This new plant will respond to expanding domestic demand in Argentina, and, together
with Honda’s Brazilian automobile plant, will form the automobile production bases for the South
American market.
Honda has set a target for fiscal 2009, ending March 31, 2009, of expanding total unit sales of
automobiles 5.5%, to 4,140,000 units.
In Japan, conditions in the automobile market are expected to remain challenging, but Honda
will work to further expand sales of models showing strong sale performances, including the new
Fit and the new Inspire, and will also implement measures to strengthen the product lineup and
expand sales as we introduce new models, such as the Freed, in May 2008. In addition, in the
marketing and service field, Honda is working to accelerate the strengthening of its sales and
Freed
Ground-breaking ceremony for the new
automobile plant in Argentina
* Source: Associação Nacional dos Fabricantes de Veiculos Automotores (the Brazilian automobile association)
** Source: Federal Chamber of Automotive Industries (the Australian automobile association)
Other Regions
Business Plan for Fiscal 2009
Automobile Business
Annual Report 2008
26